Importance of PAN Card & How to Apply It

The PAN card includes the permanent account number and provided by the Income Tax Department to all the citizens of India and the taxpayers under the command of the Central Board of Direct Taxes. It is an alpha-numeric that also allots each citizen of this country with a unique identity. Apart from this, you have to provide this card during major financial transactions such as purchase of property, investments, and also receiving salary from your employer. The key objective of this card is to have a unified approach to track the financial transactions of the citizens of India. Any citizen of India with taxable income and the foreign national who qualify to pay tax in India must apply for PAN card. The self-employed professionals with a turnover that exceeds five lakhs must also apply for PAN card.

The following are some of the reasons that demonstrate the importance of PAN card.

•Opening a new bank account

You have to mention the details of PAN card while opening a new bank account. Furthermore, you have to furnish your PAN card for depositing an amount of Rs 50,000 or more in the bank account. The PAN card details are also to be given while applying for debit or credit card.

•Identity proof

The PAN card serves as the financial identity for the taxpayers in India and every citizen must furnish this document during the financial transactions mandatorily.

•Getting new telephone connection

When you look for a new telephone connection either for your residence or a commercial establishment, you have to furnish the PAN details mandatorily. The Government of India has recommended all the telecom companies to obtain the PAN details of the applicant to mitigate the chances of extortion or other illegal activities.

•Property dealings

When you buy or sell immovable property, it usually involves a huge amount of money. For property dealings exceeding an amount of Rs 5 lakh, you have to provide the details of your PAN card.

•Investments

The citizens of India must invest a lump sum amount for tax saving purposes and to secure the future. Whether you invest money in the equity based funds or in the savings deposit schemes, it is necessary to furnish the PAN details.

•Travelling

You have to provide PAN card details even when you travel and spend over Rs 25,000 towards the expenses.

•Filing IT returns

The entities and individuals who are eligible for income tax must pay the IT returns and a PAN card is necessary for this purpose.

•Buying and selling vehicles

When you need to buy or sell a car or any other vehicle, it is necessary to furnish the details of PAN card.

•Foreign Exchange

If you need to travel abroad and want to convert Indian currency into foreign currency, it is necessary to provide the PAN card details.

Apart from this, you have to provide the details of the PAN card mandatorily for various other reasons such as investing in term deposits in the bank and while paying the insurance premium.

2.The next step is to fill the details in the form carefully and read the instructions in the website carefully before including the details.

3.You have to pay the requisite charges mentioned in the site through debit or credit card, demand draft, and net banking. As soon as you make the payment, they will display an acknowledgement letter and you have to save this number for all the future references and communication through NSDL.

4.Once the application and the payment is accepted, you have to send the supportive documents to NSDL through post or courier. They will only go ahead with the processing of the application when they receive the documents.

5.After this, NSDL is going to send the documents for verification.

6.After the completion of verification, the applicant will receive the PAN card within fifteen days.

If you are yet to apply for the PAN card, it is necessary to follow the steps properly to ensure that you get the delivery of the card at the right time. Whether minor or adult individual, companies or firms, all can apply for PAN card.